Energy regulator says Mashaba statement on tariffs 'misleading'

The National Energy Regulator of South Africa on Wednesday criticised Johannesburg Mayor Herman Mashaba for what it said was a "misleading and mischievous" statement about tariff hikes.

On Tuesday Mashaba, in a statement, had said that the regulator was "rewarding corruption at Eskom" by telling municipalities to impose a 15.63% tariff increase.

Mashaba said he would write to the SA Human Rights Commission to urgently investigate the decision.

On Wednesday the energy regulator said no tariff increases had been approved for any municipality for the 2019/20 financial year. "Municipalities are yet to submit applications to Nersa for a tariff they need to charge their customers," Nersa said.

In March the energy regulator granted power utility Eskom a 9.41% tariff hike in March for the 2019/20 year, and increases of 8.1% and 5.2% for the following two years. This was below what Eskom had asked for.

Including the 4.4% increase previously approved, the hike will total 13.81% for 2019/20, but municipalities will generally charge above this rate to cover costs.